Beeline Holdings, Inc. (BLNE) Earnings

Management highlights

### Core Strategic Direction & Leadership Confidence - CEO Nick Laiusa personally invested an additional $500,000 in Beeline common stock at a minimum price of $1.50 per share, expressing strong confidence in the company's strategy and long-term opportunity - Core strategy focuses on three priorities: generate higher revenue per transaction, grow with lower incremental operating expense, and reduce dependence on the volatile traditional mortgage cycle while improving core business unit economics - Core Mortgage Business Progress - Closed lending units grew 28% year-over-year, and 68% for the first half of 2026 vs. the first half of 2025; revenue grew 57% year-over-year, outpacing unit volume growth, confirming the success of the product mix shift - A deliberate mid-quarter shift reallocated marketing spend from lower-return conventional loans to two higher-margin Non-QM products (Bank Statement Loans and DSCR Loans); this shift drove July 2026 to the highest company margin in history, the highest year-to-date monthly revenue, and the lowest monthly cash burn in years - Workflow modifications for Non-QM products reduced third-party expenses; gain on sale grew 58% year-over-year (faster than unit growth), loan origination fees doubled, and title revenue grew 12%, indicating higher attached revenue per loan than one year prior - Strategic Acquisitions & Partnerships - Beeline completed the full acquisition of Magic Blocks (remaining 52.4% interest) on June 30, 2026 for a total purchase price of ~$638,000; Magic Blocks provides AI-driven sales and workflow technology integrated into Beeline's customer acquisition and conversion process - Full in-house ownership of Magic Blocks allows deployment across all products and the entire customer journey; near-term focus is on expanding AI to back office workflows, underwriting support, and document handling to reduce closing time and per-loan production costs - Subsequent to quarter-end, Beeline announced a non-binding letter of intent for an all-stock merger with TYTL, the infrastructure provider for Beeline's fractional home equity offering Beeline Equity; the deal is subject to due diligence, definitive agreements, shareholder approval, and a fairness opinion - If completed, the TYTL merger would add a unique home equity product that lets homeowners access equity without monthly payments or a fixed maturity, with economics not tied to interest rates; TYTL transactions are expected to generate ~3x the revenue of a traditional Beeline mortgage transaction - The combined company will retain 5% of each TYTL transaction as Reg D digital securities, building a balance sheet portfolio backed by prime residential real estate that can be used for non-dilutive initiatives such as acquisitions or share repurchases - The merger would transform Beeline from primarily a mortgage lender into a broader residential finance and real-world asset platform combining mortgage origination, title services, AI technology, fractional home equity, and digital securities on a common infrastructure - Beeline Equity Update - Operating infrastructure for Beeline Equity was built in Q1 2026, and end-to-end transaction validation was completed in Q2 2026; current volumes are still in the early stage, and the merger is expected to meaningfully expand this opportunity - Financial Operational Highlights - Q2 2026 net loss improved 24% sequentially from Q1; quarterly cash burn fell to $1.7 million, and June 2026 expenses dropped $369,000 vs. May 2026 - Total operating expenses declined 10% sequentially from Q1; general and administrative expenses fell 13% year-over-year ($1.2 million); adjusted EBITDA loss improved 14% sequentially from Q1 - Cash and restricted cash declined by ~$507,000 in Q2, a smaller drawdown than the $1.2 million decline in Q1; management is actively maintaining liquidity via new capital infusions and debt arrangements

Guidance

- Management is not providing formal full-year or quarterly financial guidance at this time, and is focused on executing against stated strategic priorities and reporting measurable progress as it is achieved - The product mix shift toward higher-margin Non-QM products drove positive momentum through the end of Q2 and into July 2026; management expects this positive margin and revenue per loan momentum to continue barring unforeseen macroeconomic disruption, with the full impact of the Q2 mix shift to be more pronounced in upcoming quarters - If the TYTL merger closes in early Q4 2026 as management currently expects, the higher per-transaction revenue from TYTL home equity transactions is expected to move Beeline's cash flow breakeven point to an earlier date than previously planned

Segment performance

Beeline's total net revenue for Q2 2026 was $2.6 million, a 57% year-over-year increase. The breakdown by revenue segment is: - Gain on sale of loans (net): $1.8 million, up 58% year-over-year, accounting for 69.2% of total revenue - Loan origination fees: $381,000, more than double the prior year's $186,000, accounting for 14.7% of total revenue - Title fees: $407,000, up from $365,000 year-over-year, accounting for 15.7% of total revenue - Fractional equity revenue: $21,000, accounting for 0.8% of total revenue - Other revenue: $64,000, accounting for 2.5% of total revenue By product segment, origination mix shifted significantly toward higher-margin non-qualified mortgage (Non-QM) products. Conventional (qualified mortgage) loans fell from 33% of closed units in Q1 2026 to 20% in Q2. Bank statement loan volume nearly tripled, while DSCR loans remained the largest product with stable margins. Revenue per loan increased 20% from the start to the end of Q2, and overall margin improved 10% sequentially from Q1.

Risks & headwinds

- The traditional mortgage market environment remains challenged, with headwinds from high interest rates, volatile capital markets, and geopolitical uncertainty weighing on traditional mortgage and refinance activity - The proposed TYTL merger is non-binding, and remains subject to multiple contingencies including completion of due diligence, definitive legal agreements, shareholder approval, a fairness opinion, and valuation analysis; there is no guarantee the transaction will close on expected terms or at all - Beeline still reports material operating losses, and liquidity remains a near-term concern; management is actively working to reduce cash burn but there is no guarantee cost cutting will be sufficient to reach breakeven on the expected timeline - Interest rate volatility could impact mortgage loan values, though Beeline only holds mortgages for a very short period (a few weeks) before selling them, limiting this exposure - All forward-looking statements are based on current assumptions, and actual results may differ materially due to a range of uncertainties; risk factors are detailed in Beeline's 2025 Form 10-K and March 2026 prospectus supplement filed with the SEC

Analyst Q&A

• Q: If the TYTL merger closes, would the 3x higher per-transaction revenue from TYTL products bring Beeline closer to cash break-even sooner than expected? Management also has high confidence in the TYTL deal – what drives that confidence? /

  A: Management expects that if the merger closes in early Q4 2026 (as it currently anticipates), the 3x higher per-transaction revenue would speed up Beeline's path to cash break-even. Management's confidence comes from 18 months of close collaboration with TYTL's team, which has resulted in a functional product that benefits homeowners, investors, and both companies. There are also preliminary plans to explore tokenizing additional assets like RMBS, and both teams have built strong mutual trust over their partnership.

• Q: What justifies the implied $23 million valuation of the early-stage TYTL? /

  A: TYTL operates in a large, low-competition market: the total addressable market for its home equity product is approximately $1 trillion, focused on prime single-family homes in high-appreciation zip codes. The business holds substantial unique intellectual property, delivers 3x higher per-transaction revenue than traditional mortgages, and would reclassify Beeline as a FinTech platform, which typically commands much higher market multiples than mortgage banking. The combination also adds a valuable growing digital asset treasury, and TYTL's team brings deep capital markets and AI expertise that complement Beeline's existing capabilities. A formal valuation analysis and fairness opinion will be completed, and Beeline shareholders will ultimately vote on the transaction.

• Q: If interest rates continue rising, is there material risk to the value of mortgage loans held for sale on Beeline's balance sheet? /

  A: Beeline only holds loans on its balance sheet for a couple of weeks before selling them to realize the gain on sale revenue. The very short holding period eliminates meaningful exposure to interest rate-driven loan value volatility.

• Q: Can you explain the digital securities portfolio that Beeline would hold after the TYTL merger, and what it will be used for? /

  A: For every completed TYTL transaction, 5% of the transaction value is retained as Reg D digital securities backed by residential real estate, which will be held on the combined company's balance sheet. TYTL already has an existing portfolio of these securities that would transfer to Beeline upon closing. Over time, this portfolio becomes a source of non-dilutive capital that Beeline can use for operating needs, acquisitions, or share repurchases. For context, $1 billion in total transaction volume would build a $50 million digital securities portfolio.